Recovery in steel demand boosts Turkish deep-sea scrap imports
Turkish steel mills resumed their deep-sea steel scrap bookings after a recovery in steel sales in the country’s domestic and export markets, sources said on Thursday May 26
A steel mill in the Iskenderun region booked a UK shipment of HMS 1&2 (80:20) at $453 per tonne cfr, sources said.
Another steel mill in the same region was said to have booked a US cargo, comprising HMS 1&2 (80:20) at $457 per tonne and shredded at $477 per tonne cfr - although some sources said the HMS 1&2 (80:20) price could have been $455-457 per tonne cfr.
The breakdowns of the cargoes was unclear at the time of publication.
Prior to these transactions, the previous transaction was heard late on Monday, when a steel mill in the Karabük region booked a European cargo of HMS 1&2 (80:20) at $455 per tonne cfr.
The daily scrap indices fell on the news of the latest deals.
Fastmarkets calculated its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $449.02 per tonne on Thursday, down by $5.98 per tonne day on day.
And Fastmarkets calculated its daily index for steel scrap, HMS 1&2 (80:20 mix), United States origin, cfr Turkey at $457.76 per tonne on May 26, down by $5.99 per tonne day on day.
This put the premium for US-origin material over European scrap at $8.74 per tonne on May 26, compared with $8.75 per tonne a day earlier.
The Indian government’s decision to impose export tariffs on iron and steel products and the decline in the value of the Turkish lira were the main drivers behind the revival in demand for steel products in both the domestic and export markets in Turkey, sources said, with steel mills returning to the deep-sea scrap market to replenish their stocks in response.